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1.A computer seller has paid an invoice with trade credit: 2/10, n/60'. What is the sellers opportunity cost? 2.Discuss two factors that influence the yield

1.A computer seller has paid an invoice with trade credit: 2/10, n/60'. What is the sellers opportunity cost? 2.Discuss two factors that influence the yield at which a commercial bill will be discounted. What effect does a bank-accepted have on the yield? 3.Describe purpose and operation of floor plan financing (including a bailment). 4.Draw the flexible exchange rate diagram of the USD/AUD. Explain in words what is expected to happen to: 1)the USD if there is a forecast increase in Australias inflation rate while the inflation rate remains stable in the USA? 2)the AUD if there is a forecast decrease in Australias real GDP relative to USAs? 3)the AUD if the RBA increases the target cash rate? 5.Factors that influence the yield at which a commercial bill will be discounted are: 6.Explain the difference between a Bill of exchange and Promissory note. Why might the issuer of promissory note require the service of an underwriter? 7.Country A and B are trading partners, and both countries operate floating exchange regimes. Suppose As inflation becomes higher than Bs inflation. Discuss how country As higher inflation rate would impact county Bs currency (Bo). Illustrate your answer with the demand and supply diagram of the No

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